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  • Annanya Venkat
    • Apr 6, 2023
    • 5 min read

Skills Needed for Business Leadership Positions

Annanya Venkat


Many influential business leaders in the modern world have similar skill sets. This furthers the “agenda” one should follow to succeed in their business. Successful business leaders are made by sacrificing, investing, and working to produce the fruit of their efforts. A rigorous lifestyle such as this one, requires one to master certain skills and incorporate daily practices to become as significant as some of the prominent leaders in contemporary society.


Through the course of today’s blog, I will explain the key traits of a successful business leader and entrepreneur. We will cover the inner-workings of the essential qualities of business ethics, emotional intelligence, financial literacy and communication that are fundamental to occupying a leadership position in a company or organization.


The first, and arguably, most important skill needed for a business leadership position is the thorough use and knowledge of business ethics. The concept of business ethics refers to the ability to navigate efficiently through business policies and practices by showing the appropriate “know-how” of moral standards required to run a business.


As of today, 44% of American companies have implemented ethics training programs. Employees with a strong understanding of business ethics are prepared to handle ethical issues at work. Businesses that promote business ethics motivate their employees to perform their duties honestly and with virtue. The most significant factor in business success is a leader's understanding and skillful use of ethics, not only at work but also in their daily lives.


Business ethics is a combination of the following factors:

  1. Reliability: Business leaders who exhibit good work ethics are reliable and are always there to help soothe situations in the workplace and execute their tasks on time, with quality.

  2. Commitment: Business leaders are not only proficient at what they do, but are committed to growing the cause for which they work. Commitment shows loyalty and dedication to one’s job.

  3. Discipline: Being able to behave with poise and without inciting unnecessary outbursts of emotion shows control and calmness, which is essential to leading a business.

  4. Relatability: The ability to relate to and cater to employees' needs is undeniably one of the most pronounced traits of a business leader. After all, employees are the team holding a business together.


Next, among the plethora of skills essential to occupying a leadership position is emotional intelligence. Emotional intelligence allows a leader to socialize, communicate, and consider what their employees need and feel. A successful business leader recognizes and regulates emotions in themselves and others.


Emotional intelligence programs are implemented as early as in high schools in order to nurture an understanding of the skills needed to recognize our own emotions and behaviors. Statistics show that students who participated in Emotional Intelligence programs graduated from college at a rate 11% higher than students who did not.


Emotional intelligence skills fall under 3 main categories:

  1. Empathy: The ability to empathize allows one to relate to and understand another person's perspective and adapt their perspective as well. Leaders must have empathy to consider everyone's thoughts, feelings, and perceptions when leading a business.

  2. Self-awareness: Being aware of how your actions, thoughts, or emotions align with your internal environment is the core concept of self-awareness. A leader needs to be able to evaluate and critique one's own feelings and behaviors to ensure the business's wellbeing. Self-awareness also allows contentment in one’s own life on a daily basis.

  3. External awareness: A leader's ability to socialize is incredibly critical to occupying a leadership position. Leaders are aware of who they surround themselves with and how they present themselves in society. External awareness also allows one to recognize what changes need to be implemented within a business.


Aside from the more technical skills we previously discussed, business leadership positions require financial literacy. The importance of financial literacy is often overlooked, however money influences almost everything in our daily lives. A successful business leader cannot succeed if they are illiterate in managing finances.


A leader without financial expertise can lead to numerous other issues for their business. Therefore, a proper education in finance and business is extremely important to hold and maintain a leadership position in the business world. Financial literacy allows one to know exactly what to do for the company's benefit, which should be a leader’s number one priority.


Operation Hope launched “Financial Literacy for All". This is a program that is in collaboration with many of the leading corporations in the business world such as Bank of America, Walmart, and Disney. Operation Hope aspires to educate the public on managing finances so that businesses can function productively, while also allowing people to learn more about managing money. Financial literacy is a skill that is not only crucial to leading a business, but also should be incorporated into our daily lives even as adolescents.


Last but not least, Communication is the cornerstone of an influential business leader. Without communication, where would society be? Communication is an integral part of our lives. It allows us to learn, share, and explore new possibilities. A business leader knows how to effectively communicate with their employees and analyze what the business needs. A steady flow of communication is what propels a business forward.


Business leaders should focus on the following aspects of communication:

  1. Familiarity: Business leaders must know their audience. The audience in question includes both the company employees and consumers of the product the business produces. Knowing the audience one needs to address is an incredibly critical skill to cultivate. The audience is the coalition of people deciding whether a business will succeed. Therefore, familiarity is arguably the most significant aspect of communication.

  2. Clarity: A business leader knows when and what to communicate with the audience. Being clear and showing clarity in what one communicates that one has the capacity to lead. Clear communication prevents any missteps or misunderstandings.

  3. Consistency: John Maxwell quotes, “Small disciplines repeated with consistency every day lead to great achievements gained slowly over time.” In the business world, consistency leads directly to success. A business leader who keeps consistent streams of communication within the organization goes beyond just being a member of the organization.


Taking on a leadership role in a business is no easy feat. Work involved in this field requires a great deal of time and effort. I assure you that the four core skills we discussed in today's blog will help you succeed as a business leader. Nonetheless, I hope this blog sheds some light on what skills to hone in on when deciding whether a business leadership position is the right career path for you.









Sources


University of British Columbia - “Programs that teach emotional intelligence in schools have lasting impact” : https://www.sciencedaily.com/releases/2017/07/170712072752.htm

CNBC ~ “Hope Global Forums rallies business leaders for financial literacy, ‘so that everyone learns the language of money’”: https://www.cnbc.com/2022/12/26/hope-global-forums-rallies-business-leaders-for-financial-literacy.html

“Fundamental Elements of Business Communication” By Laurie Brenner: https://smallbusiness.chron.com/fundamental-elements-business-communication-21737.html





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